Maybe some are, but it seems like the more exorbitant, higher end market is growing fast as well. I think a large part of that is just consumers prioritizing their spending. You may look at purchases individually, maybe you have enough of an income where you don't have to allot a certain amount to categories. But most consumers have to be aware of how much they spend and will prioritize what they spend on. So instead of spending $2k on that television just a few years ago, now they can get it for $1k and feel like they have the breathing room to spend $1k on a smartphone. They will further justify it because they know they use that smartphone a heck of a lot more than that TV. Add the payment plans to the mix and that $45/month gives the illusion of not spending 1k. But I'm trying not to generalize, not everyone thinks this way.
For myself it's not that difficult, higher priced iPhone means higher resale and most likely I am spending the same as I spend on a lower priced iPhone. After I sell last years iPhone and factor in all costs I find it costs me $300-$400 per year, which is similar if I just got on a monthly plan and upgraded every year through Apple. That's an acceptable cost for me versus my need for a phone.
